Cell Therapeutics Rises on Orphan Drug Decision

NEW YORK -- Shares of Cell Therapeutics Inc. jumped Tuesday
after the company said the Food and Drug Administration awarded
orphan drug incentives to its brain cancer drug Opaxio.

Cell Therapeutics is studying Opaxio as a treatment for
glioblastoma, the most common type of brain cancer. The FDA’s
decision means Opaxio is eligible for fee waivers and tax
incentives, and if the drug is approved it could have up to seven
years of marketing exclusivity. Orphan drug status is awarded to
drugs that are intended to treat rare diseases.

Shares of Cell Therapeutics rose 41 cents, or 18.4 percent, to
$2.64 in morning trading. Over the past year, shares have traded
between $1.77 and $8.25.

The Seattle company said glioblastoma is typically treated with
surgery and a combination of chemotherapy and radiation. It said
between 10,000 and 12,000 cases are expected to be diagnosed in the
U.S. in 2012.

Opaxio is a version of the chemotherapy drug paclitaxel. It is
designed to deliver larger amounts of paclitaxel directly to tumors
while reducing the amount of the drug that reaches healthy
tissue.